As an industrial city, Shenyang has made important contributions to China. However, with the industrial restructuring since the reform and opening up, many factories were either moved to the suburbs or closed down; workers lost their jobs, which results in a regional decline. Gongrencun region is a declined region in Shenyang city, and it has lagged behind other regions. To change the status quo, Shenyang city government began to implement urban regeneration policy from April, 2000. Workers Life Hall and Cast Museum were built in this period, which is conceived as the representative practice of urban regeneration because of their good effects on regional development. Basing on the practice of urban regeneration in Gongrencun region, this paper will elaborate the limitations of regeneration approaches by analyzing the negative impacts brown about by the simple redevelopment and propose a scheme of sustainable regeneration for Gongrencun region.